What is New in Submarine Sandwiches?
Everyone has heard the claim that when you buy a franchise, you are buying a proven system with a name brand to attract consumers.
But is it true?
For a certain generation, the Dagwood and Blondie cartoon strip defined the 1950's lifestyle. So what better icon to use to launch a sandwich shop than Dagwood?
Well, unfortunately as reported by the National Restaurant News, in January 2008, the launch has not gone well.
"Dagwood's Sandwich Shoppes LLC, whose operational debut in late 2006 was greeted enthusiastically because of the obvious brand recognition for a concept based on the famed "Blondie" comic strip, has drawn a dismaying picture for staffers, developers and franchisees.The fledgling chain laid off all but four of its nearly 20 remaining employees in mid-December after telling them it could no longer make its previously cut payroll, according to Joe Capezza, who lost his job as director of training in the layoff.
Capezza said he believes the company burned through more than $10 million in capital in the past two years, including $4 million from initial investors and the rest obtained from sales of 33 market territories to developers, presumably including those who sold franchises to operators of the 13 Dagwood's outlets in seven states."
Richard Solomon described the franchise offering this way:
"What I saw was total nonsense claiming to be a proven system, being touted by people who claimed to have been executives at Popeye's, Denny's and McDonald's.People bought territory rights as high as 100 stores at a time (Atlanta).
As one might expect, these folks touted Dagwood's as a proven system with name recognition, the famous Dagwood sandwich, saying that they don't sell franchises.
They award them. To me this was transparent nonsense."
Sean Kelly, at franchisepick, asks whether Dagwood's is a great franchise opportunity.
Sean is clearly unaware of the recent background, and I am not faulting Sean about this. But it points out a weird fact about the internet: press releases on the internet are like the living dead.
Look at this press release, from Sean's post on Dagwood.
"Dagwood and a sandwich shop is a perfect fit," said Berry, the CEO of Dagwood's Sandwich Shoppes, LLC. "We are building on the consumer awareness and loyalty associated with the strip's daily media presence and 75-year history."
This post is dated May 11, 2006 and probably just popped up in the b5media's RSS feeds or google alert, or some other franchise tracking technology.
But in the last two years, the franchise has basically imploded with a number of lawsuits being launched.
Yet the undead press release keeps proclaiming the birth of this new franchise system. Who said Rod Serling died?
